The Becker Milk Company Limited
TSX : BEK.B

September 12, 2016 13:53 ET

The Becker Milk Company Limited: Three Month Financial Results and Regular Dividend

TORONTO, ONTARIO--(Marketwired - Sept. 12, 2016) - The Becker Milk Company Limited (the "Company") (TSX:BEK.B) is pleased to report the results for the three months ended July 31, 2016.

HIGHLIGHTS

  • Total revenues for the three months ended July 31, 2016 were $938,205 compared to $994,815 for the same period in 2015;
  • Net operating income for Q1 fiscal 2017 was $799,054 compared to $874,072 in fiscal 2016;
  • Net income for Q1 fiscal 2017 was $ 0.08 per share, compared to $0.16 per share in fiscal 2016.

FINANCIAL HIGHLIGHTS

Net operating income for the three months ended July 31, 2016 decreased $75,018 compared with the previous year to $799,054, as a result of decreased revenue and increased property operating costs.

Three months ended
July 31
2016 2015
Property revenue $ 934,589 $ 990,988
Finance income 3,616 3,827
Total revenues $ 938,205 $ 994,815
Property revenue $ 934,589 $ 990,988
Property operating expenses (135,535 ) (116,916 )
Net operating income $ 799,054 $ 874,072
Adjusted funds from operations $ 288,923 $ 398,997
Net income attributable to common and special shareholders $ 145,189 $ 285,111
Average common and special shares outstanding 1,808,360 1,808,360
Income per share $ 0.08 $ 0.16

Components of the $139,922 decrease in net income for the three months ended July 31, 2016 compared to the three months ended July 31, 2015 are:

Changes in net income - Three months ended July 31, 2016 compared to three months ended July 31, 2015
Decrease in expenses related to strategic review 65,729
Decrease in deferred taxes on investment properties 45,811
Decrease in current taxes 3,409
Decrease in finance income (211 )
Increase in loss on disposal (4,659 )
Increase in administrative expenses (30,105 )
Decrease in net operating income (75,018 )
Decrease in fair value adjustment (144,878 )
Decrease in net income ($139,922 )

ADJUSTED FUNDS FROM OPERATIONS

For the three months ended July 31, 2016 the Company recorded adjusted funds from operations of $288,923 ($0.16 per share) compared to $398,997 ($0.22 per share) in 2015

Three months ended
July 31
2016 2015
Funds from operations $ 347,871 $ 384,067
Items not affecting cash:
Straight line rent 11,278 14,930
Sustaining capital expenditures (70,226 ) 0
Adjusted funds from operations $ 288,923 $ 398,997
Adjusted funds from operations per share $ 0.16 $ 0.22

STRATEGIC REVIEW

As reported in a press release dated August 6, 2013 the Company retained PricewaterhouseCoopers Real Estate Inc. to explore the possible sale of the Company. This process has not reached any conclusion and is ongoing. The Company previously announced that PWC had completed the initial steps in the sale process and that the Company was engaged in advanced discussions with a single potential acquirer. Although those discussions were terminated in fiscal 2016, the Company continues to review its strategic alternatives and will update the market as appropriate and as required.

As at July 31, 2016 total legal and engineering costs of $825,815 had been incurred in connection with the potential sale of the Company.

DIVIDEND

The Directors of the Company have declared the regular semi-annual dividend on Class B Special and Common Shares of 40 cents per share. This dividend of 40 cents will be paid to those shareholders of record as of September 23, 2016 and payable on October 6, 2016.

The dividends for Canadian tax purposes will be considered as an eligible dividend.

The Company's interim financial statements for the three months ended July 31, 2016, along with the Management's Discussion and Analysis will be filed with SEDAR at www.sedar.com.

Readers are cautioned that although the terms "Net Operating Income", and "Funds From Operations" are commonly used to measure, compare and explain the operating and financial performance of Canadian real estate companies and such terms are defined in the Management's Discussion and Analysis, such terms are not recognized terms under Canadian generally accepted accounting principles. Such terms do not necessarily have a standardized meaning and may not be comparable to similarly titled measures presented by the other publicly traded entities.

For the Board of Directors

G.W.J. Pottow, President

Contact Information

  • G.W.J. Pottow
    President
    416-698-2591